Terra co-founder Daniel Shin likely to testify on Terra collapse

Daniel Shin, co-founder of embattled crypto firm Terraform Labs, is set to testify in South Korea’s parliament on the crash of the company’s stablecoin, which has been linked to over US$40 billion in losses for investors, Forkast reported.

While the subject of the probe was not made public, Shin will likely be questioned on the crash of the company’s TerraUSD (UST) and Luna, Terra’s native token. The stablecoin was once the third-largest cryptocurrency pegged to the US dollar.

However, the report noted that local media has been skeptical about the outcome of the probe on Shin, who’s reportedly been distancing himself from co-founder Do Kwon since 2020, after the former left Terra.

Earlier this month, a South Korean court issued a warrant against Kwon and five other persons for violating the country’s capital markets laws, among others.

A representative for Terra said the charges against Kwon had “no reasonable basis.”

UST’s crash was the first domino to fall, followed shirtly by the collapse of Three Arrows Capital, Hodlnaut, and Voyager, among others.

See Also: UST, lies, and Hodlnaut: How a rising star fell back to earth